THE ROLE OF COMMUNICATION IN SACCOS IN PROMOTING FINANCIAL INCLUSION IN KENYA

Rose Ndegwa

doi:10.46827/ejefr.v4i2.871

Abstract

Financial inclusion is a prerequisite to economic development. This has been echoed by international as well as national bodies. Studies have shown that financial exclusion has its roots in social exclusion. This indicates the depth and importance of financial inclusion in creating inclusive development. Numerous studies have revealed levels of financial inclusion with limited studies performed on the role of SACCO initiatives on financial inclusion. This research examined measures of financial inclusion which include both access and usage of financial products by low income earners and the socially excluded via SACCOs. Since access and usage are supplementary, they reflect a more vivid picture of financial inclusion. The study sought to analyze the role of SACCOs in promoting financial inclusion in Kenya. The study was guided by the three specific objectives: geographical coverage of SACCOs; cost and contribution of SASRA regulations towards enhancing financial inclusion. To achieve the objectives of the study a descriptive survey research was adopted. The target population was the three SACCOs in Meru town. 43 questionnaires were issued to SACCO members to access the level of financial service access. Primary data was analyzed with aid Microsoft excel software to generate frequencies, mean and percentages. Pie charts, graphs and tables were used to present various aspects of the variables. Content analysis was used to analyze qualitative while quantitative data was analyzed using descriptive statistics. JEL: O10; O20; G10; G20 Article visualizations:<img src="/-counters-/edu_01/0663/a.php" alt="Hit counter" />

Highlights

4.4 Effect of Geographical Coverage on Financial Inclusion This section presents findings related to the first objective of study sought to find out the extent to which geographical coverage of SACCO has promoted financial inclusion
5.3.3 SASRA Regulation and Financial inclusion The findings of this study reveal that SASRA regulations have led to improvement of quality of financial services since their inception
5.4 Conclusions The study concludes that financial inclusion intervention measure should continue, the array of products that make up financial inclusion should be identified, provided and diversified

Summary

Introduction

The primary objective of inclusion should be advantaging the poor majority who do not have access to formal financial services by alleviating financial exclusion which leads to loss of opportunity to grow, retarded country growth and increase in poverty levels. Further it brings real and rising costs often born by those who can least afford them. From the 42 questionnaires issued only 1 was not answered This accounts for a response rate of 97.6 percent which is a representative of the whole population and can be relied on for analysis in this study. It further presents discussions on the findings and the researchers’ conclusions and recommendations

Objectives

Methods

Results

Discussion

Conclusion